BULLETIN NO.: MGR-96-050
TO: All Reinsured Companies
All Risk Management Field Offices
FSA Headquarters, Program Delivery and Field Operations
FROM: Kenneth D. Ackerman
Acting Administrator
SUBJECT: 1997 Crop Year Prevented Planting Issues
BACKGROUND:
For the 1997 crop year, issues have been raised regarding: 1) how the maximum
eligible prevented planting acreage is to be determined; and 2) the need to
proactively advise policyholders of the policy requirement to request an
increase in maximum eligible prevented planting acres by the sales closing
date, if they intend to plant more than the maximum eligible prevented
planting acreage allowed under current policy.
The Federal Crop Insurance Corporation (FCIC) was advised that revised 1996
crop year prevented planting policy language was not being uniformly
implemented. Therefore, FCIC issued Manager's Bulletin MGR-96-045 to provide
guidelines to follow when determining prevented planting acreage.
The current policy language specifies that,
"The acreage to which prevented planting coverage applies will not
exceed the total eligible acreage on all Farm Service Agency (FSA)
Farm Serial Numbers in which you have a share....."
The passage of the 1996 Farm Bill provided producers with greater flexibility
in planting in that they are no longer required to plant within certain crop
acreage bases. The increased flexibility has caused concern since FCIC
policy language contains provisions which generally limit maximum eligible
prevented planting acreage to prior year bases or planting history, unless
the policyholder requests an increase in eligible prevented planting acreage
by the sales closing date.
ACTION:
Until the prevented planting policy provisions regarding maximum eligible
acreage are revised, the maximum eligible prevented planting acres will be
determined on a policy (contract) basis (that is reflecting all acreage on
all FSN's carried under the policy rather than reflecting individual FSN's),
subject to the acreage limitations contained in the policy provisions. While
the determination will be based upon the insured's intent as reported by the
acreage reporting date, that reported acreage cannot exceed the maximum
acreage eligible under the policy.
Additionally, insurance providers and agents should advise each policyholder
that if they wish to increase the maximum acreage eligible for prevented
planting coverage above the limitations contained within the policy, such
request must be made by the sales closing date for the applicable crop.